Question
A stock just paid a dividend of $2.40.The dividend is expected to grow at a rate of 5% forever.If the stock is currently selling for
A stock just paid a dividend of $2.40.The dividend is expected to grow at a rate of 5% forever.If the stock is currently selling for $25.00, what return do investors require to hold this stock?
a. 18%
b. 16%
c. 15%
d. 17%
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
